Delaware Life. Pinnacle MYGA A Multi-Year Guaranteed Annuity. Plan for your retirement lifestyle. Issued by Delaware Life Insurance Company

Transcription

1 Pinnacle MYGA A Multi-Year Guaranteed Annuity Plan for your retirement lifestyle Issued by Delaware Life Insurance Company

2 2 Pinnacle MYGA A Multi-Year Guaranteed Annuity

3 Pinnacle MYGA A Multi-Year Guaranteed Fixed Annuity Guaranteed Interest Rates Pinnacle MYGA is a single-premium deferred annuity product that earns a fixed rate of interest, allowing your retirement money to grow on a tax-deferred basis. You can choose from a range of guarantee periods to meet your specific needs, and your interest rate is locked-in for that entire guarantee period. Protection of Your Principal Your money goes to work for you immediately, earning a guaranteed rate for the period you select, regardless of what happens to the stock market or interest rates. As long as you hold your contract for the length of the guarantee period, your principal and the interest you earn are guaranteed. Lifetime Income Options At the end of your initial guarantee period, you can withdraw your funds without incurring surrender charges, renew your contract into a new guarantee period, or even convert your annuity into a stream of retirement income payments, guaranteed for life. A simple, guaranteed way to build retirement assets without the principal risk typically associated with stocks, bonds, or mutual funds 3

4 Features and Benefits Tax-Deferred Growth All your earnings grow 100% tax deferred, until you start taking withdrawals or income payments. In most cases, that will be after retirement, when your tax bracket may be lower. Withdrawals are taxed as ordinary income and if taken prior to 59½, you may have to pay a 10% federal tax penalty. The Benefits of Tax Deferral $300,000 $250,000 $265,330 With Tax Deferral $200,000 $150,000 $100,000 $50,000 $0 $202,859 Without Tax Deferral 20-Year Period This chart illustrates how tax deferral would affect a hypothetical $100,000 initial premium, before any withdrawals, during a 20-year period. The chart assumes an annual interest rate of 5%, and a federal income tax rate of 28%. This chart is hypothetical and does not reflect the actual performance of the annuity. 4 Pinnacle MYGA A Multi-Year Guaranteed Annuity

5 Lifetime Income Pinnacle MYGA can provide you with a guaranteed income stream through the annuitization feature, which turns your deferred account into a regular stream of income payments. You can choose from several different annuity payout options, including payments for your entire lifetime, payments for your entire lifetime including a guaranteed minimum period payable to either you or your beneficiary(ies), or payments over the lifetime of you and a co-annuitant. If annuitization begins following the fifth contract year, no surrender charges or market value adjustment will be applied when calculating your payout. Penalty-Free Withdrawals You can also access funds from your Pinnacle MYGA by making withdrawals. Each contract year beginning in year two (2), you may withdraw up to 10% of the value of your account (as of the previous contract anniversary), without incurring any surrender charges or market value adjustment. Amounts withdrawn in excess of the 10% penalty-free amount will incur a surrender charge and market value adjustment, if applicable. Surrender charges are waived for amounts withdrawn to meet required minimum distributions (RMDs) even if they exceed the penalty-free withdrawal amount. Withdrawals before age 59½ are taxed as ordinary income and may be subject to a 10% federal tax penalty. 5

6 6 Pinnacle MYGA A Multi-Year Guaranteed Annuity

7 Features and Benefits (continued) Renewal Feature At the end of your guarantee period, you can renew your annuity for another guarantee period. You can generally continue to renew in any new guarantee period that ends prior to your 95th birthday. Renewal rates for subsequent guarantee periods will be based on competitive current interest rates at the time of your renewal, and may differ from the initial guaranteed interest rate. There is a 30 day window prior to the end of your guarantee period to select a new guarantee period. If no election is made your annuity will automatically renew for the same guarantee period you had previously selected. During your 30-day window, you can make withdrawals or surrender your annuity with no surrender charges or market value adjustment. Death Benefit Pinnacle MYGA allows you to designate a beneficiary or beneficiaries. Beneficiaries may choose to receive payouts in either a lump sum or a series of income payments. If you die before you begin receiving annuity income payments, your beneficiary will receive at least the account value (including all the interest you ve earned). 1 Spousal Continuation Privileges If the sole beneficiary is a surviving spouse, they may choose to continue the contract under its current terms, or receive their death benefit proceeds. 1 The death benefit amount is subject to adjustments for applicable charges and taxes. 7

8 Features and Benefits (continued) Market Value Adjustment If you make a withdrawal or surrender at any time other than the 30-day window prior to the end of a guarantee period, a market value adjustment (MVA) will apply. The MVA reflects changes in interest rates that may occur between the time when the guarantee period began and when the withdrawal or surrender is taken. The change is measured by comparing the base interest rate credited in your contract with the base interest rates being credited by the company on current sales of the same contract form. If the MVA is applied, an increase in base interest rates will cause a decrease in the value of your contract, and a decrease in base interest rates will cause an increase in the value of your contract. The MVA does not apply to penalty-free withdrawals, the payment of a death benefit, or at the end of the guarantee period. Please refer to the market value adjustment provision in the contract for a complete description. 8 Pinnacle MYGA A Multi-Year Guaranteed Annuity

9 Withdrawal and Surrender Costs If you make a withdrawal or surrender your contract before the end of your current guarantee period, a surrender charge applies to amounts that are greater than the penalty-free withdrawal amount. Each guarantee period has its own surrender charge schedule. Surrender charge percentages decrease during the guarantee period, as shown in the chart below. If you renew into a new guarantee period, the surrender charge schedule will reset based on the grid below. Withdrawals before age 59½ may be subject to a 10% federal tax penalty. See your financial professional or your legal or tax advisor for complete details. Withdrawal and Surrender Charges by Guarantee Period Year The withdrawal and surrender rate depends on how long you own your annuity. The rate schedule is set out below. The withdrawal charge is equal to the applicable rate multiplied by the amount subject to the charge. Surrender Charge Schedule Guaranteed Interest Rate Periods 3-year 7% 6% 5% Withdrawal and Surrender Charges by Guarantee Period Year year 7% 6% 5% 4% 3% 7-year 7% 6% 5% 4% 3% 2% 1% 10-year 7% 6% 5% 4% 3% 2% 1% 1% 1% 0.75% 9

10 Delaware Life Delaware Life is dedicated to supporting you with valuable, straightforward strategies that can help you save today and provide income for tomorrow. Delaware Life manages approximately 342,000 annuity, life insurance and corporate market insurance policies representing $36.6 billion in assets under management and $14.1 billion of invested assets as of September 30, We are committed to sound financial and risk management practices on behalf of our clients. For the most recent independent credit ratings for Delaware Life Insurance Company, please see Guarantees are backed by the financial strength and claims-paying ability of Delaware Life Insurance Company (Waltham, MA). Policies and contracts are issued by Delaware Life Insurance Company. For use with Delaware Life Insurance Company policy form ICC14-DLIC-MYGA-01A and state specific variations where applicable. Policy and rider form numbers may vary by state. Products, riders and features may vary by state, and may not be available in all states. This material may not be approved in all states. Ask your financial professional for more information. Delaware Life Insurance Company is authorized to transact business in all states except New York, as well as in the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, and is a member of Group One Thousand One. This brochure is a general description of the product. Please read your contract and disclosure statement for definitions and complete terms and conditions, as this is a summary of the annuity s features. This communication is for informational purposes only. It is not intended to provide, and should not be interpreted as individualized investment, legal or tax advice. To obtain such advice, please consult with your investment, legal or tax professional. 10 Pinnacle MYGA A Multi-Year Guaranteed Annuity

11 Pinnacle MYGA A Multi-Year Guaranteed Annuity Guaranteed Interest Rates Protection of Your Principal Lifetime Income Options Ask your financial professional how to get started. 11

12 Service Center: PO Box , Topeka, KS Sales Support: 844.DEL.SALE ( ) Customer Service: Delaware Life Insurance Company NOT FDIC/NCUA INSURED MAY LOSE VALUE NO BANK/CREDIT UNION GUARANTEE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY DLPC /17 EXP 12/18 PGI 0006 CB